Guru coppercompany operates a large mine

Assignment Help Business Economics
Reference no: EM131806872

The Southern Guru CopperCompany operates a large mine in a South American country. A legislator in the National Assembly said in a speech that most of the capital for the mining operation was provided by loans from the World Bank; in fact, Southern Guru has only $500,000 of its own money actually invested in the property. The cash flow for the mine is:

2173_large mine in a South American country.png

The legislator divided the $30.4 million total profit by the $0.5 million investment. This produced, he said, a 6080% rate of return on the investment. Southern Guru, claiming the actual rate of return is much lower, asks you to compute it.

Reference no: EM131806872

Questions Cloud

Discuss the consolidation adjustment entry : The company tax rate is 30%. Which of the following is the consolidation adjustment entry needed at reporting date to eliminate the transaction
Determine the country and business you will research : Determine the country and business you will research. Document the politics, law, and economic systems and development in your chosen country.
What causes us to sometimes project our thoughts : What causes us to sometimes "project" our thoughts and ideas onto others, thereby preventing us from thinking objectively about what they are saying?
What is the amount of over- or under applied overhead : Erickson Company applies unit-related manufacturing overhead on the basis of machine hours. What is the amount of over- or under applied overhead
Guru coppercompany operates a large mine : The Southern Guru CopperCompany operates a large mine in a South American country. A legislator in the National Assembly said in a speech
Designs and sells popular brand of consumer electronics : You are the Global HR Manager of a multinational that designs and sells a popular brand of consumer electronics.
Make the journal entry to record the costs : Carlson Company incurred the following manufacturing overhead costs during the month of June 2010. Prepare the journal entry to record the costs
How one gender may possess the four characteristics : Using the four characteristics you chose, evaluate how one gender may possess the four characteristics to a greater or lesser degree.
Determine the number of souvenir coins : Determine the number of souvenir coins that must be sold per year to justify the purchase of a $6000 stamping machine.

Reviews

Write a Review

Business Economics Questions & Answers

  Equilibrium quantity of import-decrease in equilibrium price

Explain how a tariff reduction causes an increase in the equilibrium quantity of imports and a decrease in the equilibrium price.

  How many trips versus dinners out you could purchase

Consider we wanted to know how many trips versus dinners out you could purchase. If you were told that X = number of trips and Y = the number of dinners out and you were given the following budget information;  What is the meaning of the slope of the..

  Car dealership allows her to defer payments

Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer payments for 12 months, and Kris makes 48 end-of-month payments thereafter. If the original note (loan) is for $28,000 and interest in 0.5% per month ..

  How does usa today use innovation to stay on top

How does USA Today use innovation to stay on top? What does USA Today offer as value-added?

  What is best solution to environmental conflict of interest

Consider the following supply and demand schedule for steel: Pollution from steel production is estimated to create an external cost of sixty dollars per ton. From an economic point of view, what is the best solution to this environmental conflict of..

  Damaging consequences of rising unemployment

Compare and contrast the damaging consequences of rising unemployment versus rising inflation? Be sure to define unemployment and inflation and explain how they are measured. Is one worse than the other? 600 words eassy

  In general terms-efficiency refers to

In general terms, efficiency refers to:

  Function of foreign exchange market and financial market

Explain the main difference between the function of foreign exchange market and the function of other financial market ? How can foreign exchange market improve total welfare of a country ?

  This causes an increase in demand for housing

A local radio morning man said the following when Vancouver housing prices fell by 20% in the fall of 2008: “Sure the price of housing is falling, but we know that this causes an increase in demand for housing. When the demand increases, this will le..

  Government action intended to alleviate market failure

Analyze a recently published article that deals with a government action intended to alleviate a market failure. Evaluate this decision in light of the potential or realized unintended consequences and the role that transaction costs play in the mark..

  Differences between private and public goods

What are the primary differences between private and public goods? Why might one be more efficiently provided by markets while the other is not? Explain.

  Bundle of cigarettes and coffee that iggy could trade for

Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Iggy initially has 12 cigarettes and 5 cups of coffees. Find an equation..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd